food fraud: why? what? and now what?...– potential hazards from economically motivated...

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1 ©Copyright AIB International May not be reproduced without written permission. ©Copyright AIB International May not be reproduced without written permission. ©Copyright AIB International May not be reproduced without written permission. Food Fraud: Why? What? and Now What? November 2018 Food Fraud Why is it an issue now? What exactly is food fraud? What are my next steps?

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Page 1: Food Fraud: Why? What? and Now What?...– Potential hazards from economically motivated adulteration AIB International GMP Audit Requirements • Suppliers assessed based on food

1

©Copyright AIB InternationalMay not be reproduced without

written permission.

©Copyright AIB InternationalMay not be reproduced without written permission.

©Copyright AIB InternationalMay not be reproduced without written permission.

Food Fraud:Why? What? 

and Now What?November 2018

Food Fraud

Why is it an issue now?

What exactly is food fraud?

What are my next steps?

Page 2: Food Fraud: Why? What? and Now What?...– Potential hazards from economically motivated adulteration AIB International GMP Audit Requirements • Suppliers assessed based on food

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©Copyright AIB InternationalMay not be reproduced without

written permission.

Food Fraud – Why?

Melamine in milk powder*

Melamine in pet food*

Sudan dye in spices*

Horsemeat in burgers

Corn syrup in honey

Non‐organic foods labeled as organic

Fish species misrepresented

*Caused death/ illness

Food Fraud – Why?

Increases in Food Fraud

• Easier to hide 

– Complex food supply chains

– Global food supply

• Hard financial times

– Crops impacted by weather or disease

– Tariffs or other regulations

Page 3: Food Fraud: Why? What? and Now What?...– Potential hazards from economically motivated adulteration AIB International GMP Audit Requirements • Suppliers assessed based on food

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©Copyright AIB InternationalMay not be reproduced without

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Food Fraud – Easy to Hide! 

Food Fraud – Why?

Perpetrators

• Do not want to be caught

• Do not intentionally cause harm

– But lack of knowledge may result in harm

• Criminals

Page 4: Food Fraud: Why? What? and Now What?...– Potential hazards from economically motivated adulteration AIB International GMP Audit Requirements • Suppliers assessed based on food

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©Copyright AIB InternationalMay not be reproduced without

written permission.

Food Fraud – Why?

• 72% of consumers believe food fraud is widespread

• 27% believe they have been exposed to food fraud

• 35% of consumers are least trusting of processed foods

• 18% of consumers are least trusting of red meat

• 15% of consumers are least trusting of supplements

Food Fraud – What?

Source Intended Outcome

Food Fraud Prevention

Intentional Adulteration

Economic Gain

Food Defense Intentional Adulteration

Do Harm

Food Safety Unintentional Adulteration

Naturally Occurring Hazards

Page 5: Food Fraud: Why? What? and Now What?...– Potential hazards from economically motivated adulteration AIB International GMP Audit Requirements • Suppliers assessed based on food

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©Copyright AIB InternationalMay not be reproduced without

written permission.

Food Fraud – What?

Substitution

• Ground peanut shells in cumin

• Melamine in milk powder

• Corn syrup in honey

Dilution

• Increased levels of water in a juice product

Misbranding

• Haddock sold as tilapia

• Non‐organic sold as organic

Food Fraud – What?

Related terms:

• Economically motivated adulteration (EMA)

• Food crimes

• Vulnerability

• Horizon‐scanning

Page 6: Food Fraud: Why? What? and Now What?...– Potential hazards from economically motivated adulteration AIB International GMP Audit Requirements • Suppliers assessed based on food

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©Copyright AIB InternationalMay not be reproduced without

written permission.

Food Fraud – Next Steps?

Factors that increase ingredient susceptibility/ vulnerability

• Buying it below market price

• Value added claims (organic, free range, etc.)

• Powdered forms

• Long supply chain

• History: spices, olive oil, honey, fish

Food Fraud – Next Steps?

FDA Requirements

• Preventive Controls Plan (HARPC)

– Potential hazards from economically motivated adulteration

AIB International GMP Audit Requirements

• Suppliers assessed based on food fraud risk

GFSI (BRC, FSSC 22000, IFS, SQF) Requirements

• Food Fraud Vulnerability Assessment

• Mitigation Plan

Page 7: Food Fraud: Why? What? and Now What?...– Potential hazards from economically motivated adulteration AIB International GMP Audit Requirements • Suppliers assessed based on food

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©Copyright AIB InternationalMay not be reproduced without

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Food Fraud – Next Steps?

Vulnerability Assessment and Critical Control Points

Food Fraud – Next Steps?

1. Establish a food fraud team

2. Conduct a vulnerability assessment for all ingredients

– Supply chain mapping

– Communication with suppliers

3. Establish mitigation measures for vulnerable ingredients

4. Ongoing monitoring

Page 8: Food Fraud: Why? What? and Now What?...– Potential hazards from economically motivated adulteration AIB International GMP Audit Requirements • Suppliers assessed based on food

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©Copyright AIB InternationalMay not be reproduced without

written permission.

Food Fraud – Next Steps?

Establish a Food Fraud Team

• Food fraud team coordinator

• Plant or facility manager

• Procurement

• Production manager

• Qualified auditor or external consultant

• Quality/technical/compliance manager

• Logistics representative

• Legal advisor or corporate counsel

• CEO/COO

Food Fraud – Next Steps?

Ingredients List Country of Origin

Vulnerability and / or 

Opportunity for Crime

Mitigation to ensure Integrity Risk

Level

Whole or Flaked Almond

Syria

Dried Banana India

Sunflower Seeds

Italy

Conduct a Vulnerability Assessment

Page 9: Food Fraud: Why? What? and Now What?...– Potential hazards from economically motivated adulteration AIB International GMP Audit Requirements • Suppliers assessed based on food

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©Copyright AIB InternationalMay not be reproduced without

written permission.

Food Fraud – Next Steps?

Oregano originates in Greece

Oregano cleaned in England

Oregano milled and blended in Canada

Oregano added to tomato paste in California

Pizza sauce added to pizza in Ohio

Pizza sold in Oregon

Supply Chain Mapping

Do this for all ingredients and all 

suppliers

Food Fraud – Next Steps?

Supply Chain Mapping

Page 10: Food Fraud: Why? What? and Now What?...– Potential hazards from economically motivated adulteration AIB International GMP Audit Requirements • Suppliers assessed based on food

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Food Fraud – Next Steps?

Olive oilMilkHoneySaffronOrange juiceApple juiceGrape wineMaple syrup

Vanilla extractRiceCheeseTurmericVegetable oilChili powderSesame oilCocoa powder

Strawberry pureeBeeswaxStar anise Durum wheat pastaGuar gumPalm OilPaprika

Most Common Fraudulent Foods

www.foodfraud.org

Food Fraud – Next Steps?

CountryPolitical Risk

ScorePolitical Risk

Category

World RankingPolitical

Risk

Somalia 1.15 extreme 1Syria 1.18 extreme 2Central African Republic 1.4 extreme 3South Sudan 1.76 extreme 4Iraq 1.86 extreme 5Libya 1.87 extreme 6Afghanistan 1.99 extreme 7DR Congo 2.05 extreme 8Sudan 2.07 extreme 9Yemen 2.35 extreme 10

Page 11: Food Fraud: Why? What? and Now What?...– Potential hazards from economically motivated adulteration AIB International GMP Audit Requirements • Suppliers assessed based on food

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©Copyright AIB InternationalMay not be reproduced without

written permission.

Food Fraud – Next Steps?

Establish Mitigation Measures

• Fraud specific audits

• Ingredient testing

• Approved supplier program

• Communication with suppliers

Food Fraud – Next Steps?

Resources

www.foodfraud.org

www.foodshield.org

www.horizonscan.fera.co.uk

www.ssafe‐food.org

[email protected]

Page 12: Food Fraud: Why? What? and Now What?...– Potential hazards from economically motivated adulteration AIB International GMP Audit Requirements • Suppliers assessed based on food

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written permission.

Questions